Downsizing Without Debt: How More Homeowners Are Buying Their Next Home in Cash💵

If you’ve been thinking about downsizing to simplify your lifestyle, cut costs, or move closer to loved ones, there’s a powerful trend emerging that might work in your favor:

More homeowners are buying their next home outright — with no mortgage at all.

And if you’ve owned your home for many years, you may be able to do the same. No mortgage. No monthly housing payment. Just freedom and financial breathing room.

A Record Number of Homeowners Are Mortgage-Free

Recent analysis from ResiClub shows that more than 40% of all owner-occupied homes in the U.S. are now mortgage-free, the highest level ever recorded. In simple terms, 4 in 10 homeowners own their homes outright.

Why the jump?
A big part of the trend is demographics. Many Baby Boomers have lived in their homes long enough to pay off their mortgages completely — and they now hold substantial equity without even realizing its full potential.

Why Equity Is the Secret Weapon for Downsizers

If you’re nearing mortgage payoff or already own your home free and clear, your equity can become a powerful tool when downsizing.

It can help you:

• Buy your next home in cash

• Eliminate monthly mortgage payments in retirement

• Reduce financial stress

• Increase your cash flow if you move into a smaller, less expensive home

• Enjoy a quicker, simpler home-buying process

Here’s how it typically works:
You sell your current home → Use the proceeds to buy your next home outright → Move into your new space with no debt attached.

It sounds like a dream — but for many homeowners, especially Boomers, it’s now a very achievable reality.

Cash Buyers Are Increasing Across the Country

A recent survey from John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM) shows that all-cash purchases are rising nationwide. Real estate agents in nearly every region report more clients — particularly Boomers — choosing to skip the mortgage altogether.

For those looking to downsize, buying in cash offers:

• More control over the transaction

• Lower costs and easier upkeep

• Greater flexibility as lifestyle needs change

• A smoother path to a stress-free retirement

Downsizing isn’t about settling for less — it’s about building a life that’s lighter, simpler, and more aligned with what matters most.

Bottom Line

You’ve invested years into your home — now it might be time for it to return the favor. If you’re considering downsizing, your equity could be the key to buying your next home completely debt-free.

Let’s take the first step together.
What could downsizing unlock for your future, and what would your ideal next home look like?

Credit: This article was adapted from insights provided by Keeping Current Matters (KCM) and industry research from ResiClub, John Burns Research and Consulting (JBREC), and other market sources. Content has been rewritten and customized for originality.